The government is telling GM to get ready for a June 1st bankruptcy, according to the New York Times. GM bondholders have a tough call. Do they hold out and take their chances with Chapter 11? They could fare better that way, or as happened with Lehman creditors, instead of a haircut, they might get a severe buzz cut in banktruptcy. Other things to read:
Everyone should pay income taxes (WSJ/Ari Fleischer)
“A very small number of taxpayers — the 10% of the country that makes more than $92,400 a year — pay 72.4% of the nation’s income taxes. They’re the tip of the triangle that’s supporting virtually everyone and everything. Their burden keeps getting heavier.”
Bailed-Out Banks Face Probe Over Fee Hikes (WSJ)
“The committee overseeing federal banking-bailout programs is investigating the lending practices of institutions that received public funds, following a rash of complaints about increases in interest rates and fees.”
Bank earnings look too good (Clusterstock)
“The bottom line is that if bank earnings are across-the-board too strong, then it looks like the game is just totally rigged. The economy is still going to crap, defaults are still increasing rapidly, and commercial real estate is finally set to teeter — how does it make sense for banks to be reporting anything near record earnings? It doesn’t.”
How should companies behave in a recession? (The New Yorker)
“… numerous studies have shown that companies that keep spending on acquisition, advertising, and R. & D. during recessions do significantly better than those which make big cuts.”
Times embraces return of citizen journalism (The Washington Times)
“The Washington Times’ news gathering is about to become a whole lot bigger as the newspaper launches one full print page per day of news stories reported and written by average citizens in local communities.”
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